$ 17 Billion Down The Drain — The Samsung Galaxy Note 7 Fiasco
In an attempt to challenge Apple’s dominance in the mobile handset business, the South Korean giant, Samsung, released what was intended to be its latest mobile device, Galaxy Note 7.
However, after weeks of innumerable reports that the device isn’t safe for usage the Company had no other option but to suspend the production of the device.
This consequently led to the recall of all the handsets that were already sold as the damages may be non-repairable in the short term.
Hurts more than a profit plunge.
Not only will Samsung lose $17 billion the company is expected to generate from Galaxy Note 7 sales but the turn of events is likely to kill the Note 7 brand name.
Charter Equity Research Managing director, Edward Snyder told BBC News “By the time they fix the problem they have to go through recertification and requalification and by the time that happens, they are going up against the (Galaxy) S8 launch.
The Note 7 incident may be damaging to the demand of the Samsung model obviously, since many users will not like go through the same horrifying experience of having their phones explode.
Whether or not an apology will be rendered to these customers is another issue.
A possible come?
It has been rumored however that the company is increasing its probe into the Note 7 fires beyond batteries as it tries to give the investors an assurance that it will get to the bottom of what appears to be one of the worst product failures in the history of tech.
“We know we must work had to earn back your trust and we are committed to doing just that said the Co- Chief Executive, J.K. Shin as he apologized for their mistakes at a general meeting in Seoul, following the release of the company’s results.